China
The Missouri Senate on Wednesday backed a plan to amend the state’s foreign land ownership threshold. The bill also includes a provision that would limit foreign countries from acquiring farmland in Missouri by Sept. 1.
Several grain companies announced plans to stop Russian grain exports as of July 1. As Russia tries to take control of its domestic grain industry, analysts think it will ultimately hurt Russian grain farmers.
USDA’s reports showed some surprises last week, including tighter than expected stocks. If China continues to buy corn, analysts say it creates even tighter old crop stocks, but if China quits buying, prices could drop.
China continued to buy U.S. corn this week, and analysts say China may not be finished, especially if prices dip, and China sees it as an opportunity to buy more.
China’s recent business is welcome with U.S. corn exports running behind last year’s pace by nearly 40%. So why is China back in the market and how much more will they buy?
Sluggish corn demand in the U.S. has been the concern for months. This past week, demand got a big boost, with USDA reporting daily flash sales from China. Since March 9, those sales total 83.1 million bushels.
Former President Donald Trump placed tariffs on more than $300 billion in Chinese goods during his presidency, raising costs for American companies, according to the ITC.
Russia badly needs to replace expended and outdated Soviet arms while China needs Russian energy. That is compelling math. This is bad news not just for the heroic people of Ukraine, but Europe and the US.
“In this current situation, the traditional approach to free trade agreements — which isn’t just tariff cuts, but that they do tariff cuts on a fully comprehensive basis — isn’t what we need right now,” Tai says.
While Beijing denies the balloon that flew over the U.S. in early February was a government spy vessel, market analysts warn farmers the situation could ultimately impact export demand down the road.